Estimates Of External Costs Research Articles

Estimation of economic costs of air pollution from road vehicle transportation in Turkey

Valuation of the economic, social and environmental impacts of air pollution has become crucial for the benefit-cost analysis of pollution restriction strategies, which serve as a foundation for establishing priorities for action. This paper focuses on the estimation of total external costs caused by road transport-related air pollutants using an integrated evaluation methodology combining air quality modelling, engineering science and economics. The results showed that total external costs of air pollution in Turkey in 2018 ranges between 37,500 euro that is computed for CO emissions and 2,686 million euro computed as an upper limit for NOx emissions. Regarding the social costs of CO2 emissions, the values range between 31 million euro and 1,427 million euro, the former represents the low value estimate while the latter is the high value estimate. The findings indicate that the impact of emissions from road transport on environment and society can be substantial in Turkey. Therefore, some regulations are necessary to reduce transport emissions and to sustain socio-economic welfare.

External Environmental Costs of Solid Biomass Production against the Legal and Political Background in Europe

Over the years, the generation of energy from renewable sources (RES) has gained importance because of a number of reasons. One of the most powerful arguments in favor of the development of RES is the deteriorating natural environment, and consequently worse human health, due to energy generation from fossil fuels. The extent of this impact can be determined by identifying external costs. In a circular economy, the estimation of external costs attracts much attention in both the literature and practice. The aim of this article was to review and analyze the latest literature (2018–2022) covering the external environmental costs of solid biomass production for energy purposes in the context of the political, legal and methodological debate concerning the production of energy from biomass, and to make an effort to estimate the external costs of producing energy from solid biomass grown for energy purposes. The methods used in the article were as follows: a comparative analysis of the collected references; a dogmatic analysis of the contents; a meta-analysis of results published in the literature; and an analysis of frequency occurrence and co-occurrence of the key words. The average external environmental costs of the production of biomass for energy purposes were calculated at 20.35 EUR Mg−1 d.m. with a 95% confidence range of 13.86–26.85 EUR Mg −1 d.m. (adjusted to EUR 2021). These values were estimated from the meta-analysis, which was statistically significant despite a rather small sample of studies submitted to the analysis. The European Union (EU) policy and the law passed under this policy over the past 15 years have supported and stimulated the development of renewable energy resources. The political and legal situation arising after Russia’s invasion of Ukraine and the energy crisis has forced decision-makers to revise the previously developed assumptions, although reducing greenhouse gas emissions in Europe and achieving climate neutrality remain important targets. It is also crucial to make Europe independent from Russian fossil fuels, for example by accelerating activities aiming to raise the production of renewable energy. In this context, the production of solid biomass for energy purposes gains importance, especially since it can be produced locally and become an important contributor to national energy security. Hence, the external costs of the production of biomass and energy from sources other than fossil fuels should be analyzed. Such analyses are significant because they show the actual costs of renewable energy production, including its profitability and competitiveness in relation to fossil fuels.

The Economics of Fruit and Vegetable Production Irrigated with Reclaimed Water Incorporating the Hidden Costs of Life Cycle Environmental Impacts

The estimation and quantification of external environmental costs (hidden costs) are crucial to sustainability assessments of treated wastewater reuse projects. These costs, however, are rarely considered in economic analysis studies. In this work, monetized life cycle assessment (LCA) and life cycle costing (LCC) were combined into a hybrid model to calculate cradle-to-farm gate external environmental costs (EEC) and internal costs (IC) of producing 1 t of plant-based product irrigated with reclaimed water in a Mediterranean context. The total cost was calculated by combining monetized LCA and LCC results. The results for the crops under consideration were 119.4 €/t for tomatoes, 344.4 €/t for table grapes, and 557 €/t for artichokes. Our findings show that there are significant hidden costs at the farm level, with EEC accounting for 57%, 23%, and 38% of the total cost of tomatoes, table grapes, and artichokes, respectively. Electricity use for water treatment and fertilization generated most of the EEC driven by the global warming, particulate matter, acidification, and fossil resource scarcity impact categories. When compared to groundwater, the higher internal costs of reclaimed water were offset by lower external costs, particularly when supported by low-energy wastewater treatment. This demonstrates that incorporating EEC into economic analyses might generate a better understanding of the profitability of treated wastewater reuse in crop production. In Italy and the Mediterranean region, research on the sustainability of water reuse in irrigation through life cycle thinking is still limited. Using a multi-metric approach, our analysis brought new insights into both economic and environmental performance – and their tradeoff relationships in wastewater reuse for irrigation of agricultural crops. In future research, it would be of interest to use different monetization methods as well as to investigate social externalities to explore their size and role in the total external costs.

Estimating the external costs of travel on GPS tracks

Providing people with information on the external costs of their mobility, including generated emissions and congestion, has been shown to influence travel behaviour. We present a methodology for estimating transport externalities at the link level on GPS data, with the aim to provide more accurate estimates of external costs. Emission values for various pollutants are calculated for each link using the HBEFA database, accounting for vehicle type, road category and traffic conditions. For congestion, average link delays are computed for each hour of the day. We apply this methodology to GPS trips collected during a national mobility pricing study. The methodology is validated against the Swiss national estimates. The range of per-kilometer values for various external costs are compared to the Swiss norm values. The observed trip-level heterogeneity in per-kilometer external costs supports the hypothesis that using average values in the analysis of external costs is insufficient.

External Costs for Agriculture from Lignite Extraction from the Złoczew Deposit

In many circles, including in Poland, lignite is still viewed as a cheap source of energy, which is only possible if the external costs associated with mining and burning coal are not taken into account. In Poland, this is reflected in plans to open new Złoczew opencast lignite mines. In previous studies, the analysis of external costs has focused on the external costs of coal combustion and related pollutant emissions. This paper focuses on the extraction phase. The aim of the work here described was to estimate the external costs that agriculture may incur due to the formation of a depression funnel for the projected lignite mine in the Złoczew deposit. This paper discusses factors causing uncertainty in calculated estimates of external costs in agriculture, and characterizes the Bełchatów and Złoczew opencast mines. In the paper, a methodology for calculating external costs in livestock production is then proposed. In the next part of the study, the decrease in cereal and potato yields and in the number of cattle and pigs in the area of the cone of depression of the Bełchatów opencast mine, which has been in operation for 40 years, were estimated. The estimates obtained formed the basis for estimating external costs for the planned Złoczew lignite opencast. The analyses showed high external costs for plant production and much lower for animal production. The inclusion of the estimated external costs of 12.2 € × kWh−1 in the costs of electricity production will significantly worsen the profitability of launching this opencast. The paper discusses factors causing uncertainty in calculated estimates of external costs in agriculture, and characterizes the Bełchatów and Złoczew opencast mines. The discussion also shows that the level of losses incurred in crop production due to opencast coal mining is similar to the losses incurred in crop production in extremely dry years.

Investing in CHP plants

Purpose: The purpose of this paper is to identify and evaluate the environmental impacts and estimate the external costs and benefits of building and operating a combined heat and power (CHP) plant. This research will contribute to the scientific literature in the field of public capital investments in CHP plants and facilitate the evaluation of similar assessments and studies by identifying relevant factors that affect society and the environment. Methodology: The ExternE methodology and Impact Pathway Approach (IPA) were used to estimate the externalities of building and operating the plant. The ExternE methodology considers environmental impacts, global warming impacts and accidents, and it is widely accepted in the estimation of externalities of CHP plants. Results: The main external benefits refer to the savings from the reduction of CO2 emissions per unit of energy produced, savings from the reduction of energy losses in the transmission of electricity, reduction of Croatia’s dependence on electricity imports, improvement of the balance of payments, and fiscal benefits. The main external costs arise from Croatia’s increasing import dependence on natural gas and changes in the use of agricultural land. Conclusion: It is estimated that the external benefits are higher than the external costs. In addition to the estimation of external costs, their internalization is done through various taxes and fees, thus affecting the unit cost of electricity. Further research should extend the estimation of external benefits and costs to consider broader social impacts and conduct a full cost-benefit analysis.

Environmental Costs Generated by Road Freight Transport in Poland

The sector of transport, on the one hand, contributes to the socio-economic development; on the other hand, it is the source of multiple external effects with a significant and adverse impact on the society and economy. In spite of many years' experiences in the study of external costs of transport, there are still large discrepancies in research approaches and methods. This article reviewed available studies in the scope of the estimation of external costs in transport and presented own estimations of the level of costs of climate change and air pollution generated by road freight transport in Poland. The estimation of external costs was conducted based on a method developed by Martinio et al. The obtained results of the study confirm the significant adverse effect of road freight transport on the environment. The results may be useful in the selection of appropriate transport policy instruments.

External Costs of Agriculture Derived from Payments for Agri-Environment Measures: Framework and Application to Switzerland

The costs of unintended side effects of agriculture such as water pollution cannot be directly observed in markets. However, the values society places on healthy agricultural environments are increasingly reflected in payments to farmers for measures to avoid or reduce environmental damage. This paper presents a framework for estimating external costs of agriculture from payment rates of agri-environment measures addressing specific externality issues. The framework is applied to the broad range of agri-environment measures implemented in Swiss agricultural policy. Estimates of external costs are derived for emissions of greenhouse gases, ammonia, nitrate and pesticides, soil erosion, habitat deficits, and animal suffering. The total external costs of Swiss agriculture are estimated at CHF 3.651 billion (CHF 3494 per hectare) when the calculations are based on the agri-environment measures’ average avoidance costs and of CHF 5.560 billion (CHF 5321 per hectare) when the calculations are based on highest observed avoidance costs. Potential applications include internalization policies, evaluations of agri-environment support, and integrated environmental and economic accounting.

Decarbonization of Maritime Transport: Analysis of External Costs

For Europe, transport for centuries been a catalyst of economic development. It facilitates commercial exchange among European Union (EU) Member States and much of the rest of the world. Maritime transport forms the main axis of international exchange, carrying approximately 90 % of total traded tonnage. In doing so, it pays the price of being responsible for 2.5 % of worldwide greenhouse gas emissions. The efforts to reduce the negative environmental impact of transport activity are centered on better modal integration of the common transport system, sustainability, green technologies in the transport sector, resource efficiency, and carbon emissions reduction. The International Maritime Organization has tasked its members to achieve a 70 % reduction in CO2 emissions by 2050 or, if possible, to eliminate them altogether. From a business end, it is possible to apply a variety of technologies to ensure zero-emissions or, at the least, a dramatic reduction of emissions in shipping. The aim of this paper is to evaluate the strategic approach to the decarbonization process based on EU strategic documents and low-emission and zero-emission technologies, used and developed, in maritime transport. An estimation of external costs incurred by maritime transport will allow for the assessment of benefits resulting from the application of technologies and alternative fuels proposed in the solutions. On the basis of the obtained results from external cost valuation, it will be possible to estimate the potential for decarbonization in maritime transport.

Koszty zewnętrzne transportu w Polsce

The development of transport sector is very closely linked to the process of socio-economic development. The interrelations between transport and economic growth are complex and there are many feedbacks. Transport has a vital role – it brings the markets closer together, increases production, activates regions around the infrastructure, enabling other sectors to function smoothly. Transport is also the source of many significant negative externalities for the environment, society and economy. It also turns out that, despite many years of experience in the study of the external effects and costs of transport, there are still large discrepancies in approaches and research methods, as well as terminology and rules for defining the concepts. The aim of this article is to review available studies on the estimation of external costs and to estimate these costs for transport in Poland using methods recommended by the European Commission. Knowledge of the cost external of transport is the basis for the internalisation of these costs and it allow to choose the most effective transport policy instruments.

Noise and environmental pollution from transport: decisive problems in developing ecologically efficient transport systems

The paper discusses problems of sustainable development of transport systems with special attention paid to noise pollution and emission of harmful compounds of exhaust gases. It presents traffic flow model for a transport network, which can be applied for estimation of external costs of transport resulting from congestion and congestion-related effects like noise and harmful emission. Model includes structure of vehicle stock, segmentation of transport, characteristics of roads and elements of surroundings. It allows for computational experiments with traffic distribution into transport network and traffic management and, in consequence, estimation of environmental effects of traffic flow. Formal model was supported by numerical example for transport network of Mazowieckie voivodeship in Poland. The example is based on noise pollution and its external costs. The model was developed on the base of EMITRANSYS model for Mazowieckie in 2016.

Impacts of trade related sustainability strategies on freight transportation: Modelling framework and application for France

The circular and functional economies are being presented in the literature as potential strategies for future sustainable societies. In terms of the consequences for supply chains, they will promote a much more dispersed and diversified, local and network based usage of goods than the current economy, which is comparatively linear, concentrated, long distance oriented and scale economy based. A gap in the literature is the assessment of the effects of these systems on freight transport flows. In our paper, we present a first attempt at estimating this impact using freight transport scenario building and quantitative modelling. In order to translate the main parameters that characterize these systems into factors determining freight transportation volumes, we develop a framework based on a typology of goods categories describing functional and spatial proximity between producers and consumers. In order to simulate changes in the economy, we develop scenarios for the shifting of goods from one category to another and, additionally, include internalization policies that should guide their realization. We calculate the impacts on freight flows using a new interregional transport model for France that includes distribution chains and produces estimates of external costs of transport. Our results show that circular and functional economies could lead to a 2–5% reduction of air pollutant emissions and up to a 14–26% reduction if combined with the internalization of external costs. The scenario with ongoing mass production for differentiated demand is found to lead to a 5% increase of environmental impacts compared to the baseline.

Estimation of External Costs of Transport in Canton Sarajevo for 2014

The main aim of this paper is to raise awareness of the necessity to estimate the external costs of transport, and in particular in urban area of Canton Sarajevo. It does not provide full extent of the costs as it focuses only on two components, air pollution and accidents. It focuses on the concise methodology for estimation of external expenses of air pollution from road and air transport and road traffic accidents, using official statistical data for modeling emissions (COPERT 4, Copert Street Level, IPPC Tier 3A methodology) and for accounting road traffic accidents. Statistical significance of correlation between traffic flow and measured concentration of pollutant at Otoka location is determined by Pearson’s correlation coefficient. Air pollution and traffic accidents are monetized according to the Synapse Energy Economics cost estimation of metric ton of CO2, and Nicholas School of the Environment, Duke University, for other pollutants, while estimation methodology for both air pollution and traffic accidents is done in line with Handbook on External Costs of Transport, European Commission.

Full environmental life cycle cost analysis of concentrating solar power technology: Contribution of externalities to overall energy costs

The aim of this work is to investigate the use of Full Environmental Life Cycle Costing (FeLCC) methodology to evaluate the economic performance of a 50MW parabolic trough Concentrated Solar Power (CSP) plant operating in hybrid mode with different natural gas inputs (between 0% and 30%). The analysis is based on a plant located in Southern Spain and includes current financial incentives for the promotion of renewable energies. The analysis also incorporates an estimation of external costs associated with atmospheric emissions on six categories: Human Health, Loss of Biodiversity, Local and Global Damage to Crops, Damage to Materials and Climate Change. In a scenario where the project is funded through equity, the life cycle internal costs of the plant operating with solar energy only represent 82.8€/MWh, while revenues from electricity sales amount to 85.7€/MWh, resulting in a net present value of 2.95€/MWh. Internal costs are attributable primarily to the purchase of materials and equipment incurred mainly during the Extraction and Manufacturing life cycle phase. In this scenario, external costs (calculated using CASES damage costs methodology) represent less than 2.6% of all the internal costs considered.Hybridizing CSP with natural gas allows higher overall power outputs due to extended operating hours. However, this strategy involves higher internal costs, resulting in a significant reduction in the revenues (per unit of power generated) and in the net present value of the project. Thus, the existing regulatory system in Spain makes CSP hybridization with natural gas economically unattractive. In addition, the use of natural gas in CSP installations results in a rapid increase in environmental damage as evidenced by higher external costs. For instance, external unit costs of CSP with 30% natural gas were up to 8.6 times higher than in solar-only operation, due primarily to increased greenhouse gas emissions. When the analysis is extended to consider financing through bank loan under common market conditions, the same project shows economic viability for percentages of natural gas hybridization up to 14%. However, solar-only operation remains as the best option.

Which cost of alcohol? What should we compare it against?

This paper explores and develops issues raised by recent debates about the cost of alcohol to England and Wales. It advances two arguments. First, that the commonly used estimates for alcohol harm in England and Wales are outdated, not fully reliable and in need of revisiting. These estimates rely on data that are between 4 and 12 years out of date and sensitive to questionable assumptions and methodological judgements. Secondly, it argues that policymakers, academics and non-governmental organizations should be more careful in their use of these numbers. In particular, it is imperative that the numbers quoted fit the argument advanced. To help guide such appropriate usage, the different types of cost of alcohol are surveyed, alongside some thoughts on the questions they help us to answer and what they imply for policy. For example, comprehensive estimates of the total social cost of alcohol provide an indication of the scale of the problem, but have limited policy relevance. External cost estimates represent a 'lowest common denominator' approach acceptable to most, but require additional assumptions to guide action. Narrower perspectives, such as fiscal, economic or health costs, may be relevant in specific contexts. However, optimal policy should take a holistic view of all the relevant costs and benefits. Similarly, focusing solely on tangible costs may be less controversial, but will result in an under-estimate of the relevant costs of alcohol.

The evaluation of the environmental impact and the external factors of urban transport in Constanta

Transport activities are known to have a substantial negative environmental impact especially when referring to the urban transport. Studies have shown that external costs (as accidents, congestion, air emissions, climate change or noise) are an important subject of the European Union, that is why were carried out several research projects. This paper will highlight the current requirements and methodologies used by the European Union regarding the impact of the external costs of urban transport in most of the growth poles of Europe. Taking into consideration that Constanta is considered to be one of the seven major growth poles of Romania for the 2014-2020 period, this study aims at analyzing how the results of similar studies made in others centers of the European Union can be applied in Constanta, showing different methodologies and evaluations regarding the external costs and their impact. We will analyze how the conclusions obtained in previous projects are applicable to data collected by us throughout a field research on the technical description of the means of transport used it this city. As methodology, we will use one that was adopted by the European Union regarding the estimation of urban external costs, taking into consideration that each externality has a different method for estimating it. The results of this study may be useful in developing the sustainable urban mobility plan for Constanta, as a strategic plan design to reduce the impact of urban transport for a better quality of life at present and in the future. Through this paper we will get an insight into the urban transport in Constanta, but also data on external costs generated by the urban transport, given that road transport is considered to be the most polluting transport mode.

External costs due to congestion, accidents, energy consumption and emissions before and into the economic crisis: Pilot study along selected roadways of Thessaloniki, Greece

Prior to the economic crisis, forecasts indicated a continuous increase of traffic in European cities, highlighting the need of a policy to alleviate the external impacts of transport. The crisis, however, generated pressures on all sectors of activity, with transport being an indicative example. The reduction of income and employment, the increased vehicle maintenance and renewal costs and the transport related taxation seem to affect the transport system and its external impacts. Thus, taking for granted that Europe will eventually achieve ?sustainable recovery? from the crisis, the current period presents an opportunity for promoting sustainable mobility policies and interventions in the most affected by the crisis European cities. Towards this goal, it is essential to capitalise on contemporary techniques for the monitoring of changes in transport external costs. The purpose of the paper is the development of a methodology for the estimation of external costs due to congestion, air pollution, climate change and accidents, based on road traffic data. The methodology is applied along road arteries in Thessaloniki for the period ?before and after? the emergence of the crisis. As a result, an overall decrease in external costs is observed, creating an unforeseen ?surplus? for the society during the crisis.

The implications of initiating immediate climate change mitigation — A potential for co-benefits?

Fragmented climate policies across parties of the United Nations Framework on Climate Change have led to the question of whether initiating significant and immediate climate change mitigation can support the achievement of other non-climate objectives. We analyze such potential co-benefits in connection with a range of mitigation efforts using results from eleven integrated assessment models. These model results suggest that an immediate mitigation of climate change coincide for Europe with an increase in energy security and a higher utilization of non-biomass renewable energy technologies. In addition, the importance of phasing out coal is highlighted with external cost estimates showing substantial health benefits consistent with the range of mitigation efforts.

External costs of cadmium emissions to soil: a drawback of phosphorus fertilizers

Abstract In this study the Impact-Pathway Approach methodology was applied for monetary valuation of health impacts due to cadmium emitted to soil as a micro-pollutant present in phosphorus fertilizers. Due to the high persistency of cadmium in soil, and high soil-to-plant transfer rates, humans are exposed to cadmium through their diet causing potential adverse health impacts. Future scenarios for cadmium emissions to soil via agricultural applications of inorganic and organic fertilizers in Denmark were defined. A simplified fate and speciation model allowed the increase in soil cadmium concentration to be calculated for each scenario. Human exposure was determined based on soil-crop bioconcentration factors for cadmium and dietary intake rates of Danish food crops. Updated dose–response functions linking lifetime cadmium intake to the probability of developing cadmium-induced renal disease and osteoporosis were applied. These impacts were converted into monetary values by using the EU standard value of a life-year adjusted for quality of life experience. Annualized cost per unit of phosphorus and cadmium are presented, discounted and undiscounted, for comparison. Application of struvite (magnesium ammonium phosphate) and mineral fertilizer produced the lowest external health costs, followed by the fertilizer products wastewater sludge and pig manure. The external cost estimates produced in this study could be used to design economic policy instruments to encourage use of cleaner fertilizer products.

External costs of nuclear: Greater or less than the alternatives?

Since Fukushima many are calling for a shutdown of nuclear power plants. To see whether such a shutdown would reduce the risks for health and environment, the external costs of nuclear electricity are compared with alternatives that could replace it. The frequency of catastrophic nuclear accidents is based on the historical record, about one in 25 years for the plants built to date, an order of magnitude higher than the safety goals of the U.S. Nuclear Regulatory Commission. Impacts similar to Chernobyl and Fukushima are assumed to estimate the cost. A detailed comparison is presented with wind as alternative with the lowest external cost. The variability of wind necessitates augmentation by other sources, primarily fossil fuels, because storage at the required scale is in most regions too expensive. The external costs of natural gas combined cycle are taken as 0.6 €cent/kWh due to health effects of air pollution and 1.25 €cent/kWh due to greenhouse gases (at 25€/tCO2eq) for the central estimate, but a wide range of different parameters is also considered, both for nuclear and for the alternatives. Although the central estimate of external costs of the wind-based alternative is higher than that of nuclear, the uncertainty ranges overlap.